A missing trick: Non-alcoholic beer

Why non-alcoholic beer could be a golden market in the UK’s capital.

In the 1980s non-alcoholic beer hit European shelves but failed to impress. Rave culture had begun to take hold of the UK and even high-profile advertisements by the likes of Billy Connolly could not compensate for the dour taste and lack of kick. Young and old alike just couldn’t see the point.

However, the atmosphere in London is changing. Could this once failing product turn into a success?

The facts are already pointing that way. A report by independent retail analyst Kantar Worldpanel revealed that sales have grown by 40 per cent across all retailers in the past year. Consumers have downed 15 million bottles from Tesco alone where sales have soared by 47 per cent. The stunning rise has been attributed to an increasing product range and improving taste as well as a changing target market: a health–conscious population, constantly subjected to graphic NHS campaigns, are more inclined to give up alcohol to gain a few years. This is all against the backdrop of a world where the consumption of alcohol is diminishing - UK beer sales fell by 4.8 per cent in the second quarter of 2013 alone – which makes the feat only more impressive.

However, the viewpoint of this article is that marketing gurus are missing a key group of London’s population: Muslims. The 2011 census Office for National Statistics showed that the proportion of Muslims in London had risen to 12.4 per cent of the population, with young British Asians increasingly flocking to the capital. Islam condemns the act of drinking alcohol as haram (forbidden) but, according to The Economist, several significant Saudi and Egyptian Ayatollahs have issued fatwas allowing Muslims to shake of their shackles and fill their glasses with the non-alcoholic stuff. The product has now swept across the Arab world.

The Middle East has already seen sales of non-alcoholic beer booming. Figures released by Euromonitor reveal last year 2.2 billion litres were downed with almost a third landing in the sin-free stomachs of middle-eastern Muslims. Even in Iran, where the state laments Western decadence, Iranians are drinking five times as much as they did four years ago.

What’s the draw? In the Gulf States, young Islamic socialites yearn for a taste of the west’s glamorous lifestyle without compensating their faith. Meanwhile it allows conservatives to drink in Saudia Arabia and UAE – countries infamous for their strict Islamic laws banning alcohol – without irking the authorities.  

So, big business can definitely be made by targeting London’s Islamic minority. The trick is tapping into it. Taybeh - a Palestinian brewer - have successfully done that by emphasising the Islamic side of their product: their label is coloured green, the colour of Islam, and on every bottle the word Halal (permissible) is inscribed in Arabic. A similar product is yet to launch here. In the UK, the British Heart Foundation has found that the number of shisha bars, which British Asian Muslims relish, has rocketed by 210 per cent in the past five years. A launch of a perfectly halal partnership between shisha and non-alcoholic beer could prove fruitful.   

Aside from the money, introducing non-alcoholic beer would have a significant cultural impact. Alcohol is embedded in society’s social gatherings from apéritif cocktails to Friday night pub trips. Faced with this conundrum, Muslims retreat into packs: Prevention is better than cure. Non-alcoholic beer could help bridge the gap between Muslims and their counterparts in a society which is increasingly worried about their social marginalisation. With the hate towards ‘radical Islam’ only rising following the brutal killing of Fusilier Lee Rigby, it’s a desperately needed step to Islamic integration.

Non-alcoholic beer is causing a stir. Photograph: Getty Images
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Theresa May defies the right by maintaining 0.7% aid pledge

The Prime Minister offers rare continuity with David Cameron but vows to re-examine how the money is spent. 

From the moment Theresa May became Prime Minister, there was speculation that she would abandon the UK's 0.7 per cent aid pledge. She appointed Priti Patel, a previous opponent of the target, as International Development Secretary and repeatedly refused to extend the commitment beyond this parliament. When an early general election was called, the assumption was that 0.7 per cent would not make the manifesto.

But at a campaign event in her Maidenhead constituency, May announced that it would. "Let’s be clear – the 0.7 per cent commitment remains, and will remain," she said in response to a question from the Daily Telegraph's Kate McCann. But she added: "What we need to do, though, is to look at how that money will be spent, and make sure that we are able to spend that money in the most effective way." May has left open the possibility that the UK could abandon the OECD definition of aid and potentially reclassify defence spending for this purpose.

Yet by maintaining the 0.7 per cent pledge, May has faced down her party's right and title such as the Sun and the Daily Mail. On grammar schools, climate change and Brexit, Tory MPs have cheered the Prime Minister's stances but she has now upheld a key component of David Cameron's legacy. George Osborne was one of the first to praise May's decision, tweeting: "Recommitment to 0.7% aid target very welcome. Morally right, strengthens UK influence & was key to creating modern compassionate Conservatives".

A Conservative aide told me that the announcement reflected May's personal commitment to international development, pointing to her recent speech to International Development staff. 

But another Cameron-era target - the state pension "triple lock" - appears less secure. Asked whether the government would continue to raise pensions every year, May pointed to the Tories' record, rather than making any future commitment. The triple lock, which ensures pensions rise in line with average earnings, CPI inflation or by 2.5 per cent (whichever is highest), has long been regarded by some Conservatives as unaffordable. 

Meanwhile, Philip Hammond has hinted that the Tories' "tax lock", which bars increases in income tax, VAT and National Insurance, could be similarly dropped. He said: "I’m a Conservative. I have no ideological desire to to raise taxes. But we need to manage the economy sensibly and sustainably. We need to get the fiscal accounts back into shape.

"It was self evidently clear that the commitments that were made in the 2015 manifesto did and do today constrain the ability to manage the economy flexibly."

May's short speech to workers at a GlaxoSmithKline factory was most notable for her emphasis that "the result is not certain" (the same message delivered by Jeremy Corbyn yesterday). As I reported on Wednesday, the Tories fear that the belief that Labour cannot win could reduce their lead as voters conclude there is no need to turn out. 

George Eaton is political editor of the New Statesman.

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